Dixons’ sales of electricals have been so strong that for once it doesn’t really matter that its mobile phone business continues to be horrific. The massive growth in electricals diverts the attention away from the weak part of the group and lets management talk about the positives for Dixons rather than the negatives.
“Perhaps the most important point from the latest results is the comment on recent trading where electrical sales have continued to grow at a strong pace. There was a fear that its success earlier this year was simply down to a one-off gain, namely people buying laptops so they could work from home and perhaps replacing a TV or a washing machine that’s been worked harder during lockdown,” AJ Bell’s Russ Mould said.
“Ongoing sales moment could suggest people have been happy with the service they’ve experienced and they’re back for more, or it could be that the prolonged period of being at home has focused more attention on upgrading appliances.
“Dixons still faces a tough 2021 as there will be large comparative figures to beat and any return to normality could see consumers focus less on their home needs. There is also the question of how Brexit might lead to supply disruptions. Those issues are going to apply to a wide range of retailers who may be sitting pretty now, but will have to work even harder next year.”